Joining the Tenth Circuit, the Ninth Circuit also has held that chapter 13 trustees are not paid their fees when cases are dismissed before confirmation. The identical issue was argued on February 15 before the Second Circuit.
In short order, we’ll have either unanimity or a split of circuits. A split will give rise to an issue worthy of a grant of certiorari by the Supreme Court.
Notably, the Ninth Circuit’s opinion on June 12 adopted reasoning in an amicus brief filed in support of the debtor by the National Consumer Bankruptcy Rights Center and National Association of Consumer Bankruptcy Attorneys.
Fifth Circuit Facilitates ‘No Money Down’ Chapter 13s
The Fifth Circuit opened the door a crack for so-called no-money-down chapter 13s, where debtors’ counsel are not required to eat the filing fee.....
A district judge in Shreveport, La., called a halt to a local practice of paying counsel only after confirmation of a chapter 13 plan and therefore automatically disallowing compensation whenever a.....
Although insurance proceeds from damage to a debtor’s auto ran through the chapter 13 trustee’s account, the trustee was properly barred from exacting a fee on the money that went to the lienholder.....